Legal Question in Business Law in California

I am the founder of a nonprofit corporation 501c3. As the person who has done literally all of the work to establish this organization and establish a steady stream of income, i would like to protect my position, at least somewhat, with the organization. Is there anything I can do such as require the organization to reimburse me for the costs of founding the organization should I be forced out?


Asked on 3/25/11, 9:55 pm

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can only say the time to protect your position was at the beginning, before everything was put in place. Now, it's a question of how badly the entity still needs you and if it is willing to enter into things like an employment contract, etc. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 3/26/11, 7:53 am
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I somewhat agree that this is not the time to be thinking about reimbursing yourself for start-up expenses you incurred. You should have been turning in expense accounts and reimbursing yourself on a contemporaneous basis. With i.o.u's or journal entries if there wasn't enough cash. Doing so now, especially if you are under scrutiny, will look suspicious at the minimum, and may even amount to reversing a donation already made. See a lawyer who can review the corporate articles, bylaws and books, and listen to your explanation of your situation.

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Answered on 3/26/11, 12:48 pm


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